Pan Corporation owns an 80 percent interest in Sol Company and Sol owns a 30 percent interest

Question:

Pan owns an 80 percent interest in Sol Company and Sol owns a 30 percent interest in Pan, both acquired at a fair value equal to book value. Separate incomes (not including investment income) of the two affiliates for 2011 are:
Pan ..... $3,000,000
Sol ..... $1,500,000
REQUIRED: Compute controlling share of consolidated net income for 2011 using the conventional (equation) approach.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...